ISLAMIC HOME FINANCING

Islamic Financing - Home Ownership - the Sharia Way

We understand buying a home is a major personal decision. It is a decision that goes well beyond how much home you can afford. You want your home to reflect your values and your lifestyle. That is why we are pleased to offer you a unique Sharia-compliant Islamic Home Financing program.

The SAMAD's Islamic Home Financing Program has been approved by a Board of Internationally recognized Shari'ah Scholars since 1996. The program complies with Islamic Financing Guidelines and therefore free of interest (riba).

The Islamic mortgage program is called "Lease To Purchase" (Ijara wa Iqtina). The Lease To Purchase contract blends many of the concepts found in traditional lending institutions.

The architects of the Islamic finance 'contract' were guided by three basic principles:

1) to create a contract for interest-free financing,
2) to structure the 'contract' so that it upholds the basic rights, duties, and obligations found in traditional home mortgage, and
3) to retain the income tax deductibility benefits of the traditional home mortgage.

How the Program Works
1. The individual selects the property
2. Pays the required on-account payment (traditionally called down payment), which could be 5% to 20% or higher if the individual chooses to do so.
3. An independent trust holds the title to the property.
4. The house can be leased for 10, 15, 20 or 30 years, depending on the individual choice.
5. The lessee pays monthly rent to the trust, also called on-account payments. The trust will pay real estate taxes and property taxes on behalf of the lessee and add these to the monthly rent. At the end of the lease period, the title is transferred to the lessee for a fee of $1.00.
6. Should the personal situation for the lessee change and he or she has a need to sell the house, the trust is informed of this need and an arrangement is made to sell the house. If the house is sold at a profit, the lessee keeps 100% of the profit. If there is a loss, the lessee bears the first loss.

Even though the 'Lease to Purchase' program was specifically designed to meet the religious obligations of Muslims, it will be made available to all qualified people in the Untied States, regardless of race, creed, color, or sex.

The Islamic Shariah contract "Lease to Purchase" is owned and copyrighted by CIHF Partners and SAMAD Group, Inc., which also acts as the General Managing Partner for the Partnership. SAMAD Group, Inc. may license the program to other financial organizations that might be interested in meeting the needs of the Muslim market in the United States.

Please contact us for more information about Islamic Financing or complete the Prequalification form and we will have someone contact you.